What do predictions have to do with a Hummer?

[MC]

Almost anyone can pick a direction correctly (though we end up making things harder than we have to thanks to emotions). And most traders with moderate screentime can even see the general S&R levels. But to expect to the tick predictions is something even pros can't provide. It's a losing concept, trying to impose your limits and expectations on millions of other market participants.

You might be able to park a H1 Hummer in a 1 car garage a few times but it's not worth the stress. Don't bother trying it if you like sanity and your paint job. That's what people are doing with super tight stops. If you need to run that tight a stop you're playing outside your accounts risk tolerance and/or you don't fully accept the risk of the trade. Widen the stops, reduce the position sizing and park it in a 2 car garage, it's way less stressful and surely more consistant. And driving a Hummer, with the cost of gas you can't really afford to lose money on the market.

Really the main key is to go with the flow and don't try to out think the market. Add to that fully embracing the risk of each trade and you really shouldn't be stressed at all even if your stopped out.

[Simonyadig]

Thanks Mr. Spammer for bumping this thread. This is the reason I failed at trading futures, I am sure of it. I had too tight of stops and the normal whippy action stopped me out too easily. I'll be back and I know exactly how I want to approach it this time. More conviction in my trades, wider stops, averaging in to trades, etc. If i see an uptrending market pulling back to strong support and say it's hitting the 15 min 200 MA, I'll go long once it hits the 200 and even add to it if it goes against me. Certain areas you know will get a reaction, it's just a matter of where exactly.

[Timmyb]

Great Simon. I would love to see you come back to them. I feel like maybe I turned a corner myself. If you ever want to chat about futures let me know. And i really do think your on the right track there. People say losers average losers, But there is a difference between screaming at your pc and buying contract after contract as the price goes against you and creating a position. No one can nail tops and bottom perfect but a high percentage can get their average dang close. Always leave powder in you keg. The key with futures is to remember they are far different than any other animal. I am trying my best to work stops into my trading but i am having a hard time. i am now using a hard 5 point stop. But I will have to see how things go. The big guys don't pick a level and just start buying it there. Even cramer preaches to use you stuff to gauge direction then begin to limp into your position. In reality your last contract added should almost never go against you more than 2 points imo. But everything varies.

Tim

[MC]

Originally Posted by Timmyb

Great Simon. I would love to see you come back to them. I feel like maybe I turned a corner myself. If you ever want to chat about futures let me know. And i really do think your on the right track there. People say losers average losers, But there is a difference between screaming at your pc and buying contract after contract as the price goes against you and creating a position. No one can nail tops and bottom perfect but a high percentage can get their average dang close. Always leave powder in you keg. The key with futures is to remember they are far different than any other animal. I am trying my best to work stops into my trading but i am having a hard time. i am now using a hard 5 point stop. But I will have to see how things go. The big guys don't pick a level and just start buying it there. Even cramer preaches to use you stuff to gauge direction then begin to limp into your position. In reality your last contract added should almost never go against you more than 2 points imo. But everything varies.

Tim

Good input. Patience is a must. I believe John Carter said if people would double their stops they would probably become profitable from that alone. People are too hellbent on being "right". You can be wrong a few times and create a "right"...if done carefully and planned out.